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1

2 law enforcement Botero et al. [2004] World Bank [1995]

3 severance pay 1.2.

4 1 1 [2004] [2007] 1 [2006] [2008] [2008]

5 Lazear [1990] 2 employment-at-will doctrine statute law 1970 common law 1 implied-contract exception 2 public policy exception 3 good-faith exception 3 unjust-dismissal legislation wrongful-discharge law Krueger [1991] Autor, Donohue and Schwab [2004, 2006] MacLeod and Nakavachara [2007] 2 Botero et al. [2004] legal origin Botero et al. [2004] Botero et al. [2004] 3

6 Dertouzos and Karloy [1992] DK [1992] Miles [2000] DK [1992] Autor, Donohue and Schwab [2006] ADS [2006] DK [1992] Miles [2000] ADS [2006] Autor, Donohue and Schwab [2004] 3 DK [1992] DK [1992] two-stage least squares: 2SLS 2SLS 4 ADS [2006] DK [1992] ~ ~ ADS [2006] 4 4 Autor, Donohue and Schwab [2004] DK [1992] exclusion restriction DK [1992] 2SLS fitted value 2 3

7 ADS [2006] Miles [2000] ADS [2006] Miles [2000] Walsh and Schwarz [1996] 5 Miles [2000] ADS [2006] ADS [2006] Miles [2000] ADS [2006] Autor, Donohue and Schwab [2004] 3 6 difference-in-difference Besley and Burgess [2004]

8 right-to-work law Holmes [1998] Industrial Disputes Act,

9 [2003: ] Besley and Burgess [2004] Besley and Burgess [2004] 7 8 [2003] Sundar [2005] Sharma [2006] Fallon and Lucas [1993]

10 1 2 Besley and Burgess [2004] pro-worker pro-employer r st s t 1 y st = s + βt + μ rs, t 1 α + X γ + ε st st 2 1 ˆ μ < 0 ˆ μ > 0 Besley and Burgess [2004]

11 Besley and Burgess [2004] Factories Act, Besley and Burgess [2004] 3.3. Acemoglu, Aghion and Zilibotti [2006] Aghion and Griffith[2005] [2003: 188-9] 11 Kambourov [2009]

12 Aghion et al. [2008] 1951 Industries Development and Regulation Act, industrial license Aghion et al. [2008] Aghion et al. [2008] i s t 2 y ist = α + β + δ d + μ r + X γ + ε is t it st ist ist 3 y ist = α + β + η + θ ( d r ) + X γ + ε is st it it st ist ist dit t i 2 δ 3 θ Aghion et al. [2008] ˆ θ < Aghion et al. [2006]

13 Besley and Burgess [2004] Aghion et al. [2008] 3.4. Besley and Burgess [2004] Aghion et al. [2008] Sinha [2005] Sinha [2005] Sinha [2005: 63-72] 2 Letter of Intent

14 choice points porous legislative intentions administrative rules Sinha [2005] Besley and Burgess [2004] y st = s + βt + μ rs, t 1 α + X γ + δ t + ε st s st Sinha [2005] Aghion et al. [2008]

15 Aghion et al. [2008] 4. Botero et al. [2004] 12 Botero et al. [2004] 3 13 Botero et al. [2004] Botero et al. [2004] Botero et al. [2004: ]

16 GDP Botero et al. [2004] GDP GDP 3 16 Botero et al. [2004] 15 1 GDP 16 1 GDP GDP GDP 3 47

17 Caballero, Cowan, Engel and Micco [2004] [2003: 224-5] [2003: ] Autor, Donohue and Schwab [2006] MacLeod and Nakavachara [2007]

18 Munshi and Rosenzweig [2006] [2004] [2008] [2008] [2003] [2006] [2007] No.29 Acemoglu, Daron, Philippe Aghion and Fabrizio Zilibotti [2006] Distance to Frontier, Selection and Economic Growth, Journal of the European Economic Association, 4(1), pp Aghion, Philippe, Robin Burgess, Stephan Redding and Fabrizio Zilibotti [2006] The Unequalizing Effect of Liberalization: Evidence from Dismantling the License Raj in India, NBER Working Paper

19 [2008] The Unequalizing Effect of Liberalization: Evidence from Dismantling the License Raj in India, American Economic Review, 98(4), pp Aghion, Philippe and Rachel Griffith [2005] Competition and Growth, Cambridge University Press: MIT Press. Autor, David H. [2003] Outsourcing at Will: The Contribution of Unjust Dismissal Doctrine to the Growth of Employment Outsourcing, Journal of Labor Economics, 21(1), pp Autor, David H., John J. Donohue and Stewart J. Schwab [2004] The Employment Consequences of Wrongful-Discharge Laws: Large, Small or None at All? American Economic Review, 94(2), pp [2006] The Cost of Wrongful-Discharge Laws, Review of Economics and Statistics, 88(2), pp Autor, David H., William R. Kerr and Adriana D. Kugler [2007] Does Employment Protection Reduce Productivity? Evidence from US States, Economic Journal, 117, pp.f Besley, Timothy and Robin Burgess [2004] Can Labor Regulation Hinder Economic Performance? Evidence from India, Quarterly Journal of Economics, 119(1), pp Botero, Juan C., Simeon Djankov, Rafael La Porta, Florencio Lopez-de-Silanes and Andrei Shleifer [2004] The Regulation of Labor, Quarterly Journal of Economics, 119(4), pp Caballero, Richard J., Kevin N. Cowan, Eduardo M. R. A. Engel and Alejandro Micco [2004] Effective Labor Regulation and Microeconomic Flexibility, NBER Working Paper Dertouzos, James N. and Lynn A. Karloy [1992] Labor-Market Responses to Employer Liability, Santa Monica: Rand. Fallon, Peter R. and Robert E. B. Lucas [1993] Job Security Regulations and the Dynamic Demand for Industrial Labor in India and Zimbabwe, Journal of Development Economics, 40, pp Heckman, James J. and Carmen Páges (eds.) [2004] Law and Employment: Lessons from Latin America and the Caribbean, Chicago: University of Chicago Press. Holmes, Thomas J. [1998] The Effect of State Policies on the Location of Manufacturing: Evidence from State Borders, Journal of Political Economy, 106(4), pp Kambourov, Gueorgui [2009] Labor Market Regulations and the Sectoral Reallocation

20 of Workers: The Case of Trade Reforms, Review of Economic Studies, forthcoming. Krueger, Alan [1991] The Evolution of Unjust-Dismissal Legislation in the United States, Industrial and Labor Relations Review, 44(4) pp Lazear, Edward P. [1990] Job Security Provisions and Employment, Quarterly Journal of Economics, 105(3), pp MacLeod, Bentley W. and Voraprapa Nakavachara [2007] Can Wrongful Discharge Law Enhance Employment? Economic Journal, 117, F Miles, Thomas J. [2000] Common Law Exceptions to Employment at Will and U.S. Labor Markets, Journal of Law, Economics and Organizations, 16(1), pp Munshi, Kaivan and Mark Rosenzweig [2006] Traditional Institutions Meet the Modern World: Caste, Gender and Schooling Choice in a Globalizing Economy, American Economic Review, 96(4), pp Petrin, Amil and Jagadeesh Sivadasan [2006] Job Security Does Affect Economic Efficiency: Theory, A New Statistics and Evidence from Chile, Mimeograph, University of Minnesota. Sinha, Aseema [2005] The Regional Roots of Developmental Politics in India: A Divided Leviathan. New Delhi: Oxford University Press. Sharma, Alakh N. [2006] Flexibility, Employment and Labor Market Reforms in India, Economic and Political Weekly, 41(21), pp Sundar, Shyam K. R. [2005] Labor Flexibility Debate: A Comprehensive Review and Some Suggestions, Economic and Political Weekly, 40(22 23), pp Walsh, David J. and Joshua L. Schwarz [1996] State Common Law Wrongful-Discharge Doctrines: Up-Date, Refinement and Rationales, American Business Law Journal, 33(3), pp World Bank [1995] World Development Report 1995: Workers in an Integrating World, New York: Oxford University Press.

21 Besley and Burgess [2004] OLS OLS OLS OLS OLS (1) (2) (3) (4) (5) (0.064) (0.051) (0.0 39) (0.041) (0.020) (0.128) (0.1 19) (0.123) (0.106) (0.061) (0.0 54) (0.044) (0.033) (0.960) (1.1 92) (1.189) (2.326)

22 OLS OLS OLS OLS OLS OLS OLS OLS (1) (2) (3) (4) (5) (6) (7) (8) (1.815) (2.102) (2.164) (2.697) (2.813) (2.826) (2.527) (2.851) (2.923) (3.90) (4.055) (3.892) (0.152) (0.147) (0.151) (0.191) (0.170) (0.187) (0.192) (0.231)

23 OLS OLS OLS OLS OLS OLS OLS OLS (1) (2) (3) (4) (5) (6) (7) (8) (4.458) (4.463) (4.658) (7.349) (6.747) (7.236) (6.678) (6.039) (5.554) (12.010) (10.898) (11.846) (0.433 (0.437) (0.437) (0.448) (0.671) (0.747) (0.762) (0.771)

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